CapitaMall Trust Flirts with 52-Week Low as it Announces S$100 Million in Notes
Singapore-listed Retail REIT CapitaMall Trust (CMT)(SGX:C38U) has today announced the issuance of S$100,000,000 3.15 per cent fixed rate notes. The notes will mature on 18 December 2020 and will bear interest at a rate of 3.15 per cent per annum, payable semi-annually in arrear.
Properties under the CapitaMall Trust portfolio have mostly undergone asset enhancement initiatives
The notes have been issued under the S$2,500,000,000 Multicurrency Medium Term Note (MMTN) Programme. CMT will in turn use the proceeds of the loans to refinance existing borrowings and other financial obligations of CMT that the REIT manager may deem fit, such as asset enhancement initiatives. The notes will be listed and quoted on the Singapore Exchange with effect from 9 am Thursday, 19 December 2013.
The announcement came as units of CMT fell close to 1 per cent lower from its previous trading day to S$1.84. This is very close to its 52-week low of S$1.82 as investors continue to express concerns that we may be seeing limited upside to DPU grwoth in the coming quarters.
Ealier this year, Maybank Kim Eng downgraded its rating on the REIT's units to "hold", with a target price of S$2.10, citing the fact that most of the trust's eligible portfolio malls have already undergone asset enhancements, thus dimming the hope for further rental growth.
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